China's DeepSeek releases preview of long-awaited V4 model as AI race intensifies
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In this articleChinese artificial intelligence startup DeepSeek on Friday released a preview version of its long-awaited V4 large language model, allowing users to test its new capabilities and features. The release comes more than a year after DeepSeek introduced its R1 reasoning model, which rocked global tech markets due to its surprising performance and cost efficiency. Similar to DeepSeek's previous V3 model, the latest upgrade is open source, allowing developers to download the code, run it locally, and modify it.The Hangzhou-based company claimed that V4 achieves strong performance against domestic competitors, particularly in agent-based tasks, knowledge processing and inference.The company added that DeepSeek-V4 has been optimized for use with popular agent tools such as Anthropic's Claude Code and OpenClaw.The model is available in both a "pro" and a "flash" version, depending on size. Founded in 2023, DeepSeek gained attention in late 2024 with its free, open-source V3 model, which it said was trained with less powerful chips and at a fraction of the cost of models built by the likes of OpenAI and Google.Weeks later, in January 2025, it released a reasoning model, R1, that hit similar benchmarks or outperformed many of the world's leading LLMs. The R1 model had alarmed investors when DeepSeek revealed that it had only taken two months, and not even $6 million, to build the model using lower-capacity Nvidia chips. That called into question the U.S.′ lead in AI as well as Big Tech's massive spending on AI infrastructure. Since then, DeepSeek has released a series of model upgrades, but none have matched the impact of R1.The company now faces growing competition in China's booming AI sector, with players like Alibaba and ByteDance also releasing new models this year.Shares of several other Chinese AI players were down in Hong Kong trading on Friday. MiniMax and Knowledge Atlas Technology, also known as Zhipu, each fell around 8%, while Hangzhou-based developer Manycore Tech plunged 9%.A major question following the release of DeepSeek's V4 model is which chips were used to train the model.Chinese tech giant Huawei on Friday confirmed that its latest AI computing cluster, powered by its Ascend AI processors, can support DeepSeek's V4 model. However, it is unclear to what extent Huawei's Ascend chips were used in the model's training compared with Nvidia's. Chinese AI developers have been restricted from directly purchasing Nvidia's most advanced chips for AI training due to U.S. export controls. Meanwhile, Beijing has stepped up efforts to develop its domestic chip industry and reportedly pushed Chinese tech companies to adopt domestic alternatives from chipmakers such as Huawei, rather than foreign alternatives. Got a confidential news tip? We want to hear from you.Sign up for free newsletters and get more CNBC delivered to your inboxGet this delivered to your inbox, and more info about our products and services.© 2026 Versant Media, LLC.
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